Lease accounting software effectively manages and minimizes financial risks associated with lease portfolios. It is used by platforms that manage multiple real estate leases and provides a comprehensive solution for automating lease administration and accounting processes.
It also centralizes the processes and lifecycles of lease portfolios. The software automates the previously manual process of keeping track of journal entries, each lease’s audit trail, and whether a lease is an operating or financing lease.
Lease accounting functionality has always existed in some capacity, buried within lease administration software or real estate asset management software. However, its current form facilitates compliance with Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) regulations.
Lease accounting software prepares businesses for critical financial audits and reviews. In addition, it usually integrates with ERP systems to automate the creation of general ledger journal entries. The software can also integrate with existing accounting software, offering full visibility of the entire lease portfolio.
To qualify for inclusion in the Lease Accounting category, a product must:
Serve real estate professionals in both commercial and residential real estate markets
Generate journal entries and accurately calculate lease data
Classify lease types
Set up notifications for critical dates
Support the importing of data from existing repositories and spreadsheets into the tool’s database
Generate custom financial reports, audit trails, and forecast future lease obligations
Store and track data about each lease, journal entry, and asset
Comply with industry lease accounting standards such as Accounting Standards Codification (ASC) 842, International Financial Reporting Standard (IFRS) 16, or Governmental Accounting Standards Board (GASB) 87
